At Monday’s meeting, council voted to amend the $1 million request by the Spray Lake Sawmills Family Recreation Park Society to $500,000.
The money is intended to assist with emergent capital and programming issues at both Spray Lake Sawmills Family Sports Centre (SLSFSC) and the Cochrane Arena.
At the September 23 council meeting the society requested a $1 million line of credit from the Town. The credit would allow the society to draw upon as required. The society would repay the line of credit as funding became available. At the September meeting council directed administration to bring back a report that outlined new terms for this agreement. Some of the terms included setting up an interest-free reserve of $1 million instead of a line of credit. This reserve is funded by the Town’s current operating reserves. To access funds, the society would have to present a Board of Directors approved motion and business case to administration and the reserve would be repaid in full by December 31, 2029 and be closed.
Coun. Morgan Nagle said he was uncomfortable with the number, referring to the $1 million amount. He said he wasn’t convinced of the need as the organization currently has a $6 - $7 million annual operating budget.
“I’d rather them come to council and be transparent about it rather than us sign off on a blank cheque for a million dollars,” he said. Suzanne Gaida, deputy CAO for the Town said the society doesn’t want to create more work for the Town administration by having to ask for money throughout the year.
Mayor Jeff Genung, a regular user of the sport’s centre, said if this centre doesn’t work it will be converted into a Town-run facility and the Town will be signing a $1 million cheque anyway. He explained that the facility is volunteer-run and the only difference (between being a Town-run facility) is Cochrane tax payers are “getting a break”.
Genung said he visited the society’s board and said they were sinking in a financial quagmire and should be focused on programming and not finances.
“I trust this group, they have the best interests of our community at heart,” Genung said.
“This (reserve) allows them to operate in a better place. We’re putting this money into a different pocket so this group can do the work for us.” He added he was worried if the Town didn’t secure them the funds the organization would come to the Town, hand them the keys, and say: “OK, you operate it”.
Coun. Marnie Fedeyko and Coun. Tara McFadden weren’t swayed by Genung’s keys scenario. McFadden felt like Genung’s description wasn’t an accurate narrative of what is actually happening at the sports centre. Dave Devana, Town Chief Administrative Officer, said it was best to give them $500,000 and review their situation after a year. Coun. Alex Reed said council needs to recognize that asking for money likely wasn’t their choice.
“I don’t feel that the ask is unreasonable,” Reed said.
At September’s meeting Hank Biesbroek, president of the society, said the request became necessary as the sports centre works to adjust to the added complexity of its operations since the pool expansion was completed in 2017.
With the expansion, the sports centre became one of the largest such facilities in the region at 350,000 square feet and the new operations required more than 140 additional staff – triple the previous complement.
The changing complexity of the facility’s operations, which sees approximately 500,000 users annually, has meant, for the first time, the facility has been operating at a deficit going from 100 per cent cost recovery to 80 per cent. Although that is in line with facilities such as Servus Place in St. Albert, which operates at 85 per cent cost recovery, Biesbroek said (in September) the board is aiming to bring cost recovery up to 90 per cent in three years.
The changes resulted in a complete change in facility management and the hiring of a new CEO. The latter happened twice as the first hire fell ill.
The reserve fund will assist the facility in becoming more nimble in its ability to respond to issues that crop up that are outside their annual budget.
